3Q16 RESULTS
French multinational retail giant Carrefour reported net sales of €21.8 billion in 3Q16, up 3.6% from 3Q15, at constant currency excluding fuel. Including fuel, sales grew by 2.8% at constant currency and by 1.1% at current exchange rates, year over year.
Excluding fuel and calendar effects, group comps grew by 3.2% in 3Q16, while organic growth was 3.1%.
PERFORMANCE BY GEOGRAPHY
France
Sales in France accounted for 47% of Carrefour’s sales in 3Q16. Organic sales and comps mentioned below exclude fuel and calendar effects.
- Net sales in France fell by 0.9%, to €10.2 billion.
- Comps grew by 1.2% and organic sales fell by 0.3%.
- Hypermarkets in France posted comps of (1.0)%, while supermarkets posted +3.7% and other formats posted +3.2%.
- Carrefour noted that the transformation of Dia’s stores is on track to be completed by the end of the fiscal year, with 123 stores converted to the Carrefour banner during 3Q16.
Other European Countries
- Net sales in the other European countries grew by 2.4% at constant currency excluding fuel, to €5.6 billion. Including fuel, sales grew by 1.6% at current exchange rates and by 2.0% at constant currency.
- Comps grew by 1.0% and organic sales grew by 1.2%.
Latin America
- Net sales in Latin America grew by 17.2% at constant currency excluding fuel, to €4.2 billion. Including fuel, sales grew by 9.7% at current exchange rates and by 16.9% at constant currency.
- Comps grew by 14.2% and organic sales by 17.0%.
- Carrefour noted that strong performance trends continued, with Brazil comps up 12.4% and Argentina comps up 18.0%.
Asia
- Net sales in Asia fell by 2.9% at constant exchange rates excluding fuel, to
€1.8 billion. Including fuel, sales fell by 6.9% at current exchange rates and 2.9% at constant currency.
- Comps fell 5.0% and organic sales were down 3.6%.
OUTLOOK
Carrefour’s Finance Chief, Pierre-Jean Sivignon, noted that analysts’ estimates for FY16 EBIT of €2.45 billion is manageable. Consensus estimates for full-year revenues are €76.8 billion.
